The Illusion of “Free” – Why Donors Deserve Better

Have you ever made a donation online, only to find a “tip” on your receipt? You probably skimmed past a “tip” line item at checkout without noticing and assumed it went to the organization.

It didn’t. It was the 15% fee for using the platform.

You’re not alone. This deceptive practice—masking processing fees as a “tip”—has become common in fundraising platforms, leading donors to pay up to 4x more in fees than necessary.

Truth Is Everything in Giving

Unlike a regular purchase, a donation is built on trust. People give because they believe in a cause, a school, a community—not because they want to tip a software company.

Some platforms claim to be “free.” No platform fees, no processing costs—just a free way to collect donations.?

But payments aren’t free, and instead of being upfront about costs, these platforms disguise their fees as a pre-selected ‘tip’—often set at 15% or more, which is 3-4x higher than standard processing fees.

Here’s what that means in practice:

? Donors think they’re supporting the nonprofit, but they’re really paying the platform.

? The tip is automatically added, often without clear explanation.

? Organizers don’t realize their supporters are paying far more than necessary.

When donors eventually notice, they feel frustrated—not just with the platform, but with the organization that led them there.

If People Are Willing to Give More, Shouldn’t It Go to the Cause?

Many donors are happy to give generously to the causes they care about—not to software companies.

Think about it this way: These platforms are essentially asking donors,

“Will you voluntarily pay 15% more… so we can make more money?”

If they phrased it like that, who would say yes?

But they probably would give an extra 15% if they knew it was actually supporting the cause.

That’s the difference between misleading fees and real, transparent giving.

Fundraising Should Build Trust—Not Break It

If you organize fundraisers or manage donations, ask yourself:

Do you really know how much your donors are paying? And more importantly—is your platform protecting their trust?

Because trust is everything in fundraising. And once it’s broken, it’s hard to rebuild.

#DonorTrustMatters #TransparentGiving #NoTippingTricks